Rent (Business Portion)
Partially deductible based on the percentage of space used for business.
Details
If renting a home/apartment, the portion attributable to your dedicated home office (based on square footage) is deductible. Commercial office rent is 100% deductible.
Conditions
- •Home office: calculate by square footage percentage
- •Commercial space: 100% deductible
- •Keep lease agreement and payment records
A renter paying $2,000/month uses 10% as office space; deducts $200/month
Deducting 'fair rental value' of a home you own (use mortgage interest/depreciation instead)
Check Another Expense
Is Rent (Business Portion) Tax Deductible for Your Business?
Rent (Business Portion) is partially tax deductible for business purposes. You can only deduct the portion that is directly used for your business. Accurate tracking and documentation of your business usage percentage is essential.
Key Rules for Deducting Rent (Business Portion)
If renting a home/apartment, the portion attributable to your dedicated home office (based on square footage) is deductible. Commercial office rent is 100% deductible.
Requirements to Claim This Deduction
- Home office: calculate by square footage percentage
- Commercial space: 100% deductible
- Keep lease agreement and payment records
How to Document Rent (Business Portion) for Tax Purposes
Proper documentation is critical for any business deduction. For rent (business portion), you should:
- Keep all receipts and invoices showing the amount paid
- Record the date of the expense and the business purpose
- If mixed-use, maintain a log showing business vs. personal usage
- Store records for at least 3 years (7 years for major purchases)
Source: IRS Publication 587. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.
Related Expenses
Home Office
Yes, if you use a dedicated space exclusively and regularly for business.
Internet Bill
Partially deductible based on the percentage used for business.
Cell Phone Bill
Prorated for mixed use, or 100% if it's a dedicated business phone.
Office Furniture
Yes, furniture for your business workspace is fully deductible.
Computer / Laptop
Yes, fully deductible if used exclusively for business, or prorated for mixed use.
Office Supplies
Yes, office supplies consumed in your business are fully deductible.